fha/va

FHA Loans

Put the greater benefits of an FHA-Insured Loan to work for you

The Federal Housing Authority is the largest insurer of mortgages in the world. The FHA makes home financing possible for people who might not qualify for conventional mortgage programs to purchase a home or refinance their current mortgages, including Adjustable Rate Mortgages.

Why choose an FHA loan?

You may find that an FHA loan makes sense, especially if:

You’re a first-time homebuyer
You need to refinance your home but don’t have a lot of equity
You don’t have a lot of money for a down payment
You need low monthly payments that won’t increase
Your credit is less than perfect
You’re self employed or worried about qualifying

Because the Federal Housing Authority insures your mortgage, qualification guidelines may be more liberal than with other types of mortgages. In fact, the FHA guidelines include:

Down payments as low as 3% of purchase price

Refinance with as little as 5% equity

Easier credit and income guidelines

Easier job requirement guidelines

No minimum credit score requirements

Home purchase allowed just two years after a bankruptcy

Home purchase allowed just three years after a foreclosure

Minimal FHA-regulated closing costs

More options to help you keep your home and avoid foreclosure, after you purchase your home

VA Loans

Obtaining a Certificate of Eligibility

VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan. Eligibility applications can involve:

- an original determination of eligibility for the home loan benefit
- a request to replace a lost certificate of eligibility
- a request for restoration of the benefit
- issuance of a certificate reflecting refinance purposes
In each case, VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits, is the correct application.

To request a certificate from VA, you must:

Complete VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits.

Send the completed VA Form 26-1880 and any supporting evidence (see 3 and 4 below) to one of our Eligibility Centers. Under normal circumstances a response can be anticipated in roughly 10 days. This time frame will vary during periods of heavy activity

Include photocopies of your most recent discharge or separation papers covering active military duty, which show active duty dates and type of discharge. IF YOU SERVED ON REGULAR ACTIVE DUTY (NOT A RESERVIST) AND WERE DISCHARGED AFTER 1975 OR YOU HAVE PREVIOUSLY HAD A VA LOAN, IT MAY NOT BE NECESSARY FOR YOU TO PROVIDE DOCUMENTATION OF YOUR MILITARY SERVICE. However, it is best to provide such evidence with your VA Form 26-1880 if it is readily available so as to avoid possible delays in processing your request.

If you were discharged from regular active duty

If you were separated after January 1, 1950, the appropriate documentation of your military service would be DD Form 214, Certificate of Release or Discharge from Active Duty. If you were discharged after October 1, 1979, DD Form 214, copy 4 would be appropriate. A PHOTOCOPY OF DD214 WILL SUFFICE….DO NOT SUBMIT AN ORIGINAL DOCUMENT.

If your service was in Selected Reserves

If you served in the Selected Reserve you must provide documentation sufficient to establish that you served a minimum of 6 years with points earned for weekend drills or active duty for training and received an honorable discharge. Since there is no uniform document similar to the DD214 for proof of service in the Selected Reserve, a number of different forms may be accepted.

For those who served in the Army or Air National Guard and were discharged after a least 6 years of service, NGB Form 22 may be sufficient.

Those who served in the Army, Navy, Air Force, Marine Corps or Coast Guard Reserves may need to relay on a variety of forms. Often it will be necessary to submit a combination of documents such as an Honorable Discharge certificate together with a Retirement Points Statement.

If you remain on active duty

If you are now on regular active duty and have not been previously discharged from active duty service, you must submit a statement of service which includes the name of the issuing authority (base or command), and is signed by or at the direction of an appropriate official. The statement must identify you (SSN), and provide your date of entry on active duty and the duration of any time lost. If you remain on active Selected Reserve duty, the statement of service should be from your unit CO and should cite the length of time you have served with the reserve unit.

If you are seeking restoration of your previously used benefit, you should include any evidence of payment in full of your prior loan (copy of HUD-1, settlement statement for example) that you have in your possession. Normally VA receives notification that a loan has been paid, but this does not always happen. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.